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Compare today’s refinance rates
Weekly national mortgage interest rate trends
Current refinance rates
30 year fixed refinance | 6.80% | |
15 year fixed refinance | 6.15% | |
10 year fixed refinance | 6.07% | |
5/1 ARM refinance | 6.22% |
Current mortgage refinance news
More borrowers now stand to benefit from refinancing their mortgage, spurred in part by the Federal Reserve’s pivot to interest rate cuts in September. The borrowers with the most to gain are those who obtained a mortgage in the past year, when rates were in the 7 percent range.
Today’s refinance rates
Product | Interest Rate | APR |
---|---|---|
30-Year Fixed Rate | 6.68% | 6.73% |
20-Year Fixed Rate | 6.49% | 6.55% |
15-Year Fixed Rate | 6.01% | 6.08% |
10-Year Fixed Rate | 6.02% | 6.10% |
5-1 ARM | 6.21% | 6.90% |
10-1 ARM | 6.76% | 6.90% |
30-Year Fixed Rate FHA | 6.60% | 6.64% |
30-Year Fixed Rate VA | 6.49% | 6.54% |
30-Year Fixed Rate Jumbo | 6.78% | 6.83% |
Rates as of Friday, December 13, 2024 at 6:30 AM
How to refinance your mortgage
The process of refinancing your mortgage is similar to the first time you applied for one to buy a home. The key difference: You won’t have to pay nearly as much in closing costs. Here’s an overview of the steps:
-
- Check your credit score: Refinances typically require a credit score of at least 620, but a better credit score will help you secure a better rate and make your refi even more cost-effective. You can check your credit reports at AnnualCreditReport.com.
- Choose a refinance type: Many borrowers opt for a rate-and-term refinance, which changes the interest rate, term or both on their original loan. This isn’t the only way to refinance a mortgage, however.
- Calculate the breakeven timeline: A refi usually comes with upfront costs at the closing, just like an initial mortgage. Bankrate's refinance breakeven calculator can help you figure out when you’ll start realizing savings.
- Compare refinance rates: Explore refinance offers from at least three mortgage lenders and keep an eye on rates while you comparison-shop — this can help you decide when to lock in a rate.
- Organize your paperwork: Among the requirements, your lender will want to review tax returns, pay stubs and other proof of income, as well as documentation about any assets such as savings.
Is now the right time to refinance?
Linda Bell
Senior writer, Home lending
“If you were one of the lucky ones who locked in a 3 to 4 percent rate during the pandemic, refinancing might not make much sense right now. However, if your current mortgage is higher than the prevailing interest rate, refinancing could save you money in the long run by lowering your monthly payments and the total interest paid over the life of your loan.”
How to get the best refinance rate
If you compare loan offers from a few mortgage lenders, you’ll have a better chance of landing a competitive rate. Here's how:
- Nail down your goals. This will help you decide what term – 30 years, 15 years or something else – is best for you. If your aim is to more quickly pay down your loan, for instance, a shorter term might make more sense.
- Shop around. Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison. Lenders determine your interest rate based on your credit score, debt-to-income (DTI) ratio and other factors.
- Compare the interest rate and APR. The interest rate and annual percentage rate (APR) reflect the cost of the loan. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any points.
- Consider the lender’s ratings and your experience. Aside from the numbers, evaluate lenders for convenience and responsiveness. Take a look at what other borrowers have had to say about the lender, too.
Should you refinance your mortgage?
Whether you should refinance your mortgage right now depends on a few factors:
- Can you get a significantly lower rate? Refinancing to a lower rate will help you lower your monthly payment and save money over the loan term.
- Do you want to change your term? Many people also adjust the length of their mortgage when they refinance. Typically this means shortening the term from 30 years to 15 years to pay off the mortgage faster or lengthening the term up to 30 years to reduce the monthly payments.
- Do you want to tap equity? Many people perform a cash-out refinance to turn their home equity into cash by borrowing against it. This cash can then be used to make home renovations, pay college tuition or cover other major expenses.
Once you know the answers to those questions, review the pros and cons:
Pros
- You can lock in a lower rate, which can reduce your monthly payments and total interest paid.
- If your home’s value has increased, you might be able to stop paying for private mortgage insurance (PMI).
- If you need money for renovations, a cash-out refi offers relatively cheap capital. It can make your monthly payments more expensive, but home improvements tend to boost your home’s value.
Cons
- Refinance closing costs can equal 2 percent to 5 percent of the amount of the mortgage. As such, it can take several years to realize the savings of a refinance.
- If you refinance from a 30-year loan to another 30-year loan, you’ll extend your repayment period.
Mortgage refinance FAQ
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Suzanne De Vita, Senior Editor, Home Lending
I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors
Read more from Suzanne De Vita
Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate
Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.
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